Case Study Of Adidas's Supply Chain
1.0 Brief Introduction of Adidas Founded by Adi Dassler in 1940, Adidas Group is a leading sporting goods multinational corporation, including Reebok, TaylorMade-Adidas and is headquartered in Herzogenaurach, Germany. Adidas produces a wide range of sporting goods, from footwear to clothing, making them the largest sportswear manufacturer in Europe and the second biggest in the world. Adidas outsources most of its production, and is one of the few companies that has fully disclosed its global supplier list. They work with more than 1,100 independent factories globally, with the majority being in America, Asia and Europe. Adidas mainly holds direct contractual relationships with their core suppliers but also work with agents and licensees …show more content…
The sporting goods industry is characterized by short product life cycles, and demand is volatile and hard to predict. Thus, supply chains should be responsive in order to be flexible and react to consumers’ demands. However, Adidas’ supply chain would be somewhat efficient, having lesser elements of responsiveness. This is largely due to the fact that Adidas outsources most of its supply chain to suppliers around the world in order to decrease costs, which would mean that there is a more complex supply chain and also a longer …show more content…
Differentiating themselves by focusing on several aspects including having a diverse brand portfolio, leading through innovation and creating a flexible & sustainable supply chain. Adidas has adopted a multi-brand strategy in order to capture a larger segment of the consumer market by matching consumer preferences with the various brands they manage, including the strategic acquisition of Reebok and Taylor-made in order to be able to capture and respond to the trends of the sporting goods industry more effectively. They have also focused on coming up with new technology that helps to improve current processes and allow it to be more sustainable. One such technology that they have come up with is the DryDye technology, where it is a fabric dyeing process that does not require any water, and uses lesser chemicals and energy compared to the traditional fabric dyeing process. 3.2 Adidas’ Global Supply Chain
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